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Mastercard has announced plans to launch a new service called Mastercard Crypto Credential that will facilitate compliant transactions between users' wallets, starting with digital asset transfers between countries.
The new service will reportedly use CipherTrace technology, a well-known blockchain analytics platform acquired by Mastercard in 2021, to identify wallets in transactions that comply with the Financial Action Task Force's "travel rule." The service will establish a set of common standards for attestation of interactions and ensure compliance with regulatory requirements.
According to Raj Dhamodharan, the executive in charge of crypto products and blockchain at Mastercard, cross-border transactions require complex compliance and verification procedures. The identification of wallets and the exchange of information about the other party are crucial to the process.
To roll out the service, Mastercard is partnering with wallet providers Bit2Me, Lirium, Mercado Bitcoin, and Uphold. The initial project aims to enable transfers between the United States and Latin America and the Caribbean corridors.
Additionally, Mastercard is collaborating with public blockchain network organizations Aptos Labs, Ava Labs, Polygon, and the Solana Foundation to explore more use cases for the service, such as non-fungible token (NFT) transactions.
The launch of the new service by Mastercard signals the growing interest of traditional financial institutions in the crypto space, as well as the need for increased regulatory compliance in the industry.
